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Michael Saylor: Bitcoin's '$66K To $16K Crash … Shook Out The Nonbelievers' As MSTR Is Up 650% In The Past Year

Published 11/03/2024, 19:03
Updated 11/03/2024, 20:10
© Reuters.  Michael Saylor: Bitcoin's '$66K To $16K Crash … Shook Out The Nonbelievers' As MSTR Is Up 650% In The Past Year

Benzinga - MicroStrategy Inc. Chairman Michael Saylor discussed his views on Bitcoin and how his company will handle its huge investment going forward during an interview on CNBC.

"We’re buying it to hold it 100 years. So, that being the case, that $66,000 to $16,000 crash. That shook out the tourists. That shook out the nonbelievers. When it was 16,000, we were all ready to ride it to zero. And that’s what you’ll find with the Bitcoin maximalists."

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MicroStrategy has amassed more than 193,000 tokens over the past several years, making it the largest institutional holder in the world. At the time of writing, the tokens are worth nearly $14 billion.

Saylor also discussed the differences between buying MicroStrategy shares and some of the recently approved Bitcoin exchange-traded funds (ETFs). He said that MicroStrategy shares allow you to hold Bitcoin in an "accretive" manner, as they are using loans to continually buy more. MicroStrategy recently announced that it was selling $700 million of convertible notes to buy more tokens.

Additionally, Saylor noted that the fees charged by the ETFs, usually around 0.25%, are unattractive. While this could be a smaller point to Bitcoin maximalists, or those who simply want exposure to Bitcoin alone, Saylor noted that MicroStrategy is essentially "giving you a yield on your shares" through its combination of Bitcoin holdings and business operations.

MicroStrategy has performed extremely well, up over 650% in the past year. However, it is important to note that Saylor is incentivized to paint MicroStrategy shares in the best way possible, as he holds over 200,000 shares, worth over $300 million.

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Saylor also compared Bitcoin to other assets, such as gold, bonds and real estate, because it is digital and "you can trade it a million times faster than conventional assets." He also mentioned that it trades 24/7, is a global currency and that it is decentralized and useful.

In addition, Saylor mentioned that the halving could be a further benefit to Bitcoin in terms of price. He says that Bitcoin has "no negative catalysts" because it is decentralized and doesn't have cash flows. Additionally, he mentioned that the halving could reduce the amount of selling activity, as the miners would have less BTC to sell each day. According to Saylor, the halving will reduce the amount of Bitcoin mined each day from 900 to 450.

Saylor also discussed the underlying business operations of MicroStrategy. Though it is a software company, Saylor said that he is hoping to rebrand as a "Bitcoin development company" that uses the operating cash flows from the software business to fund more Bitcoin purchases.

Saylor closed the interview by urging viewers not to think of Bitcoin as a currency, but as "digital property; a billion-dollar building in cyberspace … the killer application is capital preservation for everybody."

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© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.

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